Reimbursement of business expenditures to employees

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CA Praveen Chopra (Querist)
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10 July 2017 As per section 9(4) of the CGST Act, if any purchase is made by a registered person from unregistered person, tax will have to be discharged by such registered person on reverse charge basis. So if the employees of a registered company incur some expenditures on behalf of the company and claim reimbursements of the same from company, whether GST will be paid by the Company on reverse charge mechanism or not ? Pls clarify.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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10 July 2017 Yes GST is to be paid under reverse charge for reimbursement of expenses to employees, but first we have to see the nature of expenses which we have reimbursed
for eg :- Conveyance in public transport is exempt